Demand Analysis for Red Creole Onion and Garlic in the Philippines, 2018

Date

6-2023

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Julieta A. Delos Reyes

Committee Member

Agham C. Cuevas

Abstract

Red creole onion and garlic are of the allium family of vegetables commonly used in Filipino households. They are also known to reduce risk of certain ailments such as cancer and cardiovascular diseases. However, even though red creole onion and garlic are commonly consumed, and their demand continues to increase, studies regarding their demand are still few and outdated.

As the government continuous to protect the local onion and garlic industry, development and research centers dedicated for both commodities are considered important to improve the varieties and meet the local demand. Hence, the study was conducted to analyze the demand for red creole onion and garlic. Specifically, the study: characterized the selected household respondents of the 2018 Family Income and Expenditure Survey; determined the relationship between red creole onion and garlic; compared the demand for onion and garlic by socio-economic factors and barangay classification; identified the factors affecting the demand for red creole onion and garlic; and drawn policy implications and provided recommendations.

The study used secondary data from the 2018 Family Income and Expenditure Survey. The 2018 FIES sampling frame was also used int he study thus the 17 regions of the country were considered as the study area. Analytical procedures used descriptive and market basket analyses, t-test of means, ANOVA and LSD test, and multiple regression analysis.

The market basket analysis showed that there is an interdependence between red creole onion and garlic with a lift value of greater than one. The multiple regression analysis revealed that the demand for red creole onion and garlic were significantly influenced by their own price, price of complements, price of substitutes, income, household size, sex, educational attainment and barangay classification. Male headed households had higher demand for red creole onion and garlic than female-headed households. Households living in rural areas also had higher demand for both commodities. Households with higher income and higher educational attainment also had higher demand for both commodities. Among the socio-economic characteristics, only age was found insignificant. Own price elasticities showed that red creole onion and garlic had an inelastic demand. Garlic and carrot were considered substitutes of red creole onion while okra, malunggay, and tilapia were considered complements of garlic. Their income elasticities showed that both commodities are necessities.

The study recommends that the government policies pertaining to pricing decisions should carefully weigh how much price increase can the consumers tolerate to pay without them sacrificing their needed level of consumption. Also, when studying the repercussions if intended price policies, the likely responses in the rural areas should also be a carefully considered. They may also make appropriate demand projections using this forecast.

Language

English

LC Subject

Onion industry, Garlic Industry, Demand (Economic theory)

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2023 A14 M36

Notes

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Document Type

Thesis

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